The state of Hawaii did not run afoul of ERISA by limiting its health insurers’ right to demand repayment of medical expenses if an insured later settles with the party that caused the injury, a federal appeals court held on Wednesday.

The 9th U.S. Circuit Court of Appeals affirmed a 2017 ruling that invalidated a $400,000 lien asserted by the Hawaii Management Alliance Association against a $1.5 million settlement that Randy Rudel had received as “general damages” from the other driver in a motor vehicle accident.

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